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Chinese stocks continue to mount a.....>

CHINA STOCKS
CHINA STOCKS: Chinese stocks continue to mount a strong reversal as their
correlation with rates and FX continues to decline. All the major indices are
recovering from oversold territory.
- H-shares are outperforming on the day, with the HSCEI and HSI up ~0.5%, while
mainland indices are broadly flat. The AH-Premium Index has fallen to 117.70,
indicating that stocks still trade at a ~17% discount in Hong Kong compared to
the Mainland. 
- The HSI trades at 28840 with no significant resistance until 30000. On the
downside, support should come in at around 28400 which marks yesterday's
breakout level. 
- The 2-week rolling correlation between the CSI 300 and the yuan is currently
at -.59, after reaching almost 1 back in late June. 

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